{"id":1053190,"date":"2025-06-10T13:16:38","date_gmt":"2025-06-10T17:16:38","guid":{"rendered":"https:\/\/democrats.org\/?p=1053190"},"modified":"2025-06-10T13:16:39","modified_gmt":"2025-06-10T17:16:39","slug":"economists-warn-trumps-budget-could-worsen-inflation-and-lead-to-financial-crisis","status":"publish","type":"post","link":"https:\/\/democrats.org\/news\/economists-warn-trumps-budget-could-worsen-inflation-and-lead-to-financial-crisis\/","title":{"rendered":"Economists Warn Trump\u2019s Budget Could Worsen Inflation and \u201cLead to Financial Crisis\u201d"},"content":{"rendered":"\n
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Economists are sounding the alarm: Donald Trump and House Republicans\u2019 billionaire-first budget could skyrocket inflation and drag the American people into a financial crisis. While Trump\u2019s former shadow president Elon Musk slams this budget as a \u201cdisgusting abomination,\u201d working families are already drowning in bills <\/em>without<\/em><\/a> any relief in sight. The bottom line: Trump\u2019s bill will steer the American economy toward recession \u2014 all to help the rich get richer.  <\/em><\/p>\n\n\n\n

Economists are warning that Donald Trump\u2019s billionaire-first agenda could worsen inflation and lead to a financial crisis. <\/strong><\/p>\n\n\n\n

Washington Post<\/a>: \u201cThe boost to the national debt from President Donald Trump\u2019s sweeping tax bill could add fresh fuel to inflation just as his tariff policies are already pushing prices up, mainstream economists are warning. \u2026<\/strong><\/p>\n\n\n\n

\u201cFormer treasury secretary Lawrence H. Summers, who was among the first to warn that pandemic-era stimulus measures in 2021 would spark inflation, said price increases could worsen<\/strong> if Trump\u2019s \u2018big, beautiful bill\u2019 became law. \u2026<\/p>\n\n\n\n

\u201cCriticism of the GOP bill has picked up in recent days among Republican lawmakers, Wall Street investors \u2014 and even Musk, who last week called the measure \u2018a disgusting abomination\u2019 that would lead to \u2018crushingly unsustainable debt.\u2019 \u2026<\/strong><\/p>\n\n\n\n

\u201cA spike in the national debt can be enough to boost inflation on its own, economists say.<\/strong> Every 1 percent increase in the national deficit as a share of GDP translates to price increases of roughly $300 to $1,250 per household over five years, according to estimates from the Budget Lab at Yale University.\u201d<\/p>\n\n\n\n

ABC<\/a>: <\/strong>\u201cThe \u2018One Big Beautiful Bill Act\u2019 … could add $2.4 trillion to the deficit<\/strong> over the next decade, according to a new analysis out Wednesday from the nonpartisan Congressional Budget Office.\u201d <\/strong><\/p>\n\n\n\n

At Trump\u2019s command, House Republicans passed their disastrous budget to make Trump\u2019s tax scam permanent and fund another round of tax breaks for the ultra-wealthy on the backs of working families. <\/strong><\/p>\n\n\n\n

USA Today<\/a>: \u201cLow-income families would lose, wealthier ones would gain under GOP tax proposals\u201d <\/strong><\/p>\n\n\n\n

\u201cLow-income families stand to lose hundreds if not thousands of dollars in income while wealthy ones will gain even more<\/strong>, according to a new analysis of Congressional Republican tax and budget proposals. \u2026 <\/p>\n\n\n\n

\u201cThe report estimated that families with a modified adjusted gross income of less than $10,000 would lose over $2,700<\/strong> (or nearly a 15% reduction in income). Families who make between $10,000 and $20,000 would lose over $800<\/strong>, or about 4.4% reduction in income, while families who make between $20,000 and $30,000 would lose $400<\/strong>, or about 1.5% reduction in income. <\/p>\n\n\n\n

\u201cIn comparison, families with higher incomes would benefit<\/strong> from the extension of the 2017 tax cuts.\u201d<\/p>\n\n\n\n

NBC News<\/a>: \u201cSenate Republicans released a new budget blueprint Wednesday that would pave the way for \u2026 making President Donald Trump\u2019s 2017 tax cuts permanent.\u201d<\/strong><\/p>\n\n\n\n

Trump\u2019s tax scam will devastate working families \u2014 ripping away health care from millions and making the largest cuts to food assistance in modern history. <\/strong><\/p>\n\n\n\n

Politico<\/a>: \u201cThe House Energy and Commerce Committee, in a 30-to-24 party-line vote, advanced<\/strong> the health care section of the GOP\u2019s sweeping tax bill that would slash Medicaid spending by hundreds of billions<\/strong> of dollars.\u201d <\/p>\n\n\n\n

Politico<\/a>: \u201cThe House Agriculture Committee voted 29-25 along party lines to <\/strong>advance legislation that would cut as much as $300 billion in food aid spending to pay for Republicans\u2019 domestic policy megabill.\u201d<\/strong> <\/p>\n\n\n\n

West Virginia Watch<\/a>: \u201cMedicaid cuts could hurt older adults who rely on home care, nursing homes\u201d <\/strong><\/p>\n\n\n\n

ProPublica<\/a>: \u201cThe Trump Administration Cracked Down on Medicaid. Kids Lost Insurance.\u201d<\/p>\n\n\n\n

Georgetown University Center for Children and Families<\/a>: \u201cCuts to Medicaid<\/strong> Will Shift Costs to Families, Providers and Will Be Especially Harmful to Rural Communities\u201d<\/strong><\/p>\n\n\n\n

Politico<\/a>: \u201cThe GOP proposal would create the largest overhaul in decades to the Supplemental Nutrition Assistance Program, which helps more than 42 million people in the U.S. pay for food,<\/strong> by forcing states to share the cost of SNAP benefits.\u201d<\/p>\n\n\n\n

Center on Budget and Policy Priorities<\/a>: \u201cMillions of Low-Income Households Would Lose Food Aid<\/strong> Under Proposed House Republican SNAP Cuts\u201d<\/strong><\/p>\n\n\n\n

\u201cRegardless of how Republican lawmakers enact a cut of this magnitude, this would slash more than 20 percent from a program that helps more than 40 million people, including 1 in 5 children, afford groceries.\u201d<\/strong><\/p>\n\n\n\n

NBC News<\/a>: \u201cAnti-hunger advocates slam House Republicans\u2019 proposed budget cut to SNAP as \u2018unconscionable\u2019\u201d<\/strong><\/p>\n\n\n\n

###<\/p>\n","protected":false},"excerpt":{"rendered":"

Economists are sounding the alarm: Donald Trump and House Republicans\u2019 billionaire-first budget could skyrocket inflation and drag the American people into a financial crisis. While Trump\u2019s former shadow president Elon Musk slams this budget as a \u201cdisgusting abomination,\u201d working families are already drowning in bills without any relief in sight. The bottom line: Trump\u2019s bill […]<\/p>\n","protected":false},"author":293,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1053190","post","type-post","status-publish","format-standard","hentry","category-press-release"],"acf":[],"yoast_head":"\nEconomists Warn Trump\u2019s Budget Could Worsen Inflation and \u201cLead to Financial Crisis\u201d - Democrats<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/democrats.org\/news\/economists-warn-trumps-budget-could-worsen-inflation-and-lead-to-financial-crisis\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:site_name\" content=\"Democrats\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-10T17:16:38+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-06-10T17:16:39+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/democrats.org\/wp-content\/uploads\/2025\/01\/Black-Logo-White-Fill-For-Email.png?w=1024\" \/>\n<meta name=\"author\" content=\"Shelby Reese\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shelby Reese\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/democrats.org\/news\/economists-warn-trumps-budget-could-worsen-inflation-and-lead-to-financial-crisis\/\",\"url\":\"https:\/\/democrats.org\/news\/economists-warn-trumps-budget-could-worsen-inflation-and-lead-to-financial-crisis\/\",\"name\":\"Economists Warn Trump\u2019s Budget Could Worsen Inflation and \u201cLead to Financial Crisis\u201d - 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